Walter Does It His Way
Not what you're looking for?
Address both of the scenarios listed below. Support your responses with appropriate cases, laws, and other relevant examples research and cite research, using APA guidelines.
Scenario 1: Walter Does It His Way
Jonathan operated a landscaping business as a sole proprietor. Jonathan's business picked up in the spring and summer, so he asked his friend Walter to help him. After doing some research, Walter determined that he could become an employee or act as an independent contractor. Walter was excited about the opportunity; however, he wanted to reach an agreement that would provide him the best tax benefits. How does an employee differ from an independent contractor? What status should Walter choose? Explain your reasoning.
Purchase this Solution
Solution Summary
Address both of the scenarios listed below. Support your responses with appropriate cases, laws, and other relevant examples research and cite research, using APA guidelines.
Scenario 1: Walter Does It His Way
Jonathan operated a landscaping business as a sole proprietor. Jonathan's business picked up in the spring and summer, so he asked his friend Walter to help him. After doing some research, Walter determined that he could become an employee or act as an independent contractor. Walter was excited about the opportunity; however, he wanted to reach an agreement that would provide him the best tax benefits. How does an employee differ from an independent contractor? What status should Walter choose? Explain your reasoning.
Solution Preview
For the greatest tax advantages, Walter would want to become an employee. An employee is paid a salary and has federal taxes withheld from his pay. As a sole proprietor (SP), Walter is responsible for 100% of tax payments on his income without having withholding for federal taxes throughout the year. As a SP, he needs to pay taxes at the ordinary income rate less his qualified business ...
Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Operations Management
This quiz tests a student's knowledge about Operations Management
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.